The pandemic has changed how individuals shop, accelerating some patterns and derailing others. According to brand-new research by Deloitte, in the fresh food classification, sales have actually sped up, but the consumer profile has actually changed. This has ramifications for fresh, processed, and frozen food companies.
3 ways the pandemic has changed customer behaviors
Deloitte’s recent fresh food customer study, conducted in July, constructs on in 2015’s survey, which looked at buying behaviors and values connected with fresh food. They discovered 3 primary distinctions between 2019 and 2020.
Less regular in-store shopping
In 2019, 30% of consumers reported searching for fresh food numerous times a week, while 27% stated they go shopping less than when a week. This year, that trend has actually reversed– only 15% shop multiple times a week, while 42% store less than when a week (the portion who reported shopping simply when a week stayed flat).
This impacts the fresh classification because, of course, fresh foods are perishable. Deloitte anticipates the trend towards less frequent in-store sees to continue.
Different acquiring patterns
While customers aren’t stockpiling as much as they did early in the pandemic, they’re buying more than they utilized to. This, in addition to supply chain disruptions, has actually led to stockouts.
In Deloitte’s study, almost two-thirds (65%) of respondents said they had actually been not able to purchase a fresh food they wanted due to the fact that it wasn’t in stock. When this happens, 44% purchase a various fresh food instead, 28% change the out-of-stock items with frozen or processed foods, and 27% simply go without. Nearly nobody selects to go to a various shop to discover their first-choice item.
Increased value of safety
Price was the top purchase driver in 2019 and it still is now. However, safety, which Deloitte keeps in mind “up until now was simply anticipated and not part of consumer concerns,” has actually handled increased value. This consists of “safety for self, others, and the employees who produce food, in addition to security in terms of packaging to avoid contamination.” Meanwhile, less value is being put on factors like sustainability, which was very important prior to the pandemic.
New profiles of fresh food customers
The previous outcomes aren’t unexpected– they fit well with other reports of how customers’ buying patterns have altered since March. What might have greater implications for the industry is that customer profiles have actually likewise changed.
In 2015, Deloitte categorized fresh food customers into three groups: Forwards, Followers, and Neutrals. The Forwards tended to be more youthful, really committed to health and health, and ready to spend for better-for-me foods. Followers were middle-aged, less committed to health and health, and had above-average desire and ability to pay. Finally, Neutrals were usually older, more interested in price and benefit than health and health, and not interested in paying a premium for better-for-me items.
Based on the new information, those categories no longer fit. Today’s fresh food customers fall into just two primary groups: Standard (older, lower-income, more rural), and Contemporary (younger, more affluent, more urban, more ethnically diverse).
While the Standard consumers comprised 60% of the sample and the Contemporary customers just 40%, Deloitte keeps in mind that, since they’re more youthful and have acquiring power, “comprehending the modern consumer and finding ways to specifically accommodate them today can assist hold off competition and unlock future development.”
Here’s what the Contemporary group appears like:
- Place a high worth on fresh– 75% want to pay a premium for fresh food (vs. 62% of Conventional consumers).
- Purchase more fresh food– 50% have increased fresh food purchases throughout the pandemic (vs. 27% of Standard customers).
- Look for products that are in your area sourced, use recyclable packaging, are water neutral, don’t consist of preservatives, and are non-GMO.
- Welcome omnichannel shopping– Just 27% purchase many of their fresh foods at grocery stores (vs. 95% of Standard customers). Contemporary customers likewise purchase online (26%), at regional (nonchain) shops (18%), at farmers markets (12%), and at fresh food stands (10%).
- Going to change out-of-stock items with alternative fresh foods (52%) or with frozen/processed foods (30%).
To succeed throughout and after the pandemic, fresh food providers will require to comprehend and cater to these consumers. Read the full Deloitte short article for more insights and strategies.
Released at Thu, 05 Nov 2020 00:12:46 +0000